Harveen Gadhoke of Adili Associates has been appointed to turn around cash-strapped Savannah Cement with the view of recovering Sh10 billion owed to KCB and Absa Bank Kenya.
In a notice, the administrator announced he took charge on May 12 after the High Court set aside an injunction earlier issued to cement firm seeking to block the lenders from attaching its property.
"Following the appointment, all the affairs, business and property of the company are managed by an administrator. The directors of the company no longer have the power to deal with these matters,'' Gadhoke said.
On Friday, High Court in Nairobi lifted the order granted to the cement maker in December, stopping the appointment of the administrator and the banks from seizing its assets.
Justice Alfred Mabeya held that, following the ruling dismissing the injunction application, the application had been overtaken by events.
Late last year, the cement maker obtained a temporary order blocking any seizure of its assets or the lenders from appointing an administrator or liquidator to manage its properties.
Savannah Cement has been in court for the past year, disputing the debt of over Sh7 billion owed to KCB Bank and over Sh3 billion owed to Absa Bank.
The cement firm has been facing financial challenges for the past three years. It closed briefly in late 2021, forcing all employees to proceed on a 10-day break to pave the way for “plant maintenance”.
When the grinding plant opened, 21 senior employees were sacked and the managing director at the time, Ronald Ndegwa, left the company in a huff.
This is not the first time Gadhoke is being appointed to revive a company in the country. He is currently guiding the resuscitation of Nyama Mama, Malpast Industries Limited and also proposed to take over Mumias Sugar from PVR Rao.
